With the focus on auction returns more acute as we start the New Year, GreenLight Remarketing sat down with Ken Osborn, the general manager of ADESA Dallas, to discuss his auction business and trends to watch in 2009.

greenlight remarketing: How long has ADESA Dallas been around and what is your niche market?

ken osborn: ADESA Dallas opened in the mid ‘80s as a part of Gulf States Toyota. Our market is defined by the client mix. On the OEM side we have Toyota, Honda and BMW. We have the largest bank/finance clientele in the Dallas wholesale market.

glr: What trends do you see in the auction area that dealers should be aware of?

ko: Certification programs on vehicles being sold are a much larger part of the wholesale auction market. It is important for dealers to be aware of guarantees and inspections being performed by the institutional seller. Arbitration policies and interpretations are becoming more and more universal with the implementation of National Auto Auction Association guidelines across the country. Although the NAAA guidelines are not 100 percent in force with every client at every auction, the trend is certainly moving that way. The availability of condition reports via a variety of methodologies on the Internet is helping dealers preview purchases before coming onsite, thereby saving time.

glr: How does ADESA Dallas add value to the dealer’s business in today’s economy?

ko: Because we offer a large number mid-priced vehicles (a result of our clientele mix), the dealers find a good population of retail desirable vehicles at ADESA Dallas. In today’s economic environment that is essential to success in used-car retail. This auction is an ADESA leader in the post-sale inspection process. This after-sale inspection process can provide a dealer with a greater sense of comfort on his/her purchases. Surprisingly, many dealers who purchase “as-is” units also use the post-sale inspection service to ascertain the total condition of their buys.

glr: What can dealers do to get the most out of their auction experience?

ko: Prepare. That’s number one for going to the auction. Hit the Web site. Study the runlists. Look at your recent retail units and determine what the dealer needs to sell again. Review the dealership’s current inventory and determine which units should be sent to the auction and refreshed with a different vehicle. ADESA takes the view that we are the “stock exchange”— literally. Sell what you don’t want or need. Buy what you do need.

glr: What attracts dealers to buy autos from Drive?

ko: Dealers have several basic needs:

A good variety in the mix (trucks, cars, SUVs)

Consistent representation on the auction block

Consistent certification processes

Consistent arbitration policy interpretation

All of these needs translate into a consistent expectation of buying success for the dealer. Today’s dealer will find the lane that meets those needs regularly and seldom ventures away. The Drive remarketing program is tailored to those needs.